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Thursday, 5 January 2012

Pound up as euro dumped amid fears for banks

The EUR/GBP hits a new low as banks must raise more capital, particularly in Italy and France, who are balancing on  the 7.0% of rate of return for their bonds. I would rather call it, point of NO return.

Looks like last week Cameron made Anita an offer she couldn't refuse. All the sudden Le Frog is sore loser in this game.

France successfully raised €7.96bn of long-term debt in a bond auction but was forced to pay a far higher price comparably to December. Private banks are not so eager to risk their money, preferring to deposit them into the Euro Bank for a return of 0.25% (!!!!), so the demand for the bonds was lacklustre.

Le Frog (Jean Reno) and crew hitching in "Flushed Away"

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